London tube station shopping centre purchase requiring maximum LTV. With strong tenants and a stable income stream, a 15-year term was achievable at sub 250 bps.
- Max LTV 70%
- Term (Years) 15
Sub 250 BPS
- Retail, hotel and car park
- London Underground station location
- First charge over assets
- From rental of all properties
- 100% let to strong national retailers
- 9 year WAULT to break
- Maximum LTV acquisition finance
- Long term debt
- Low amortisation
- Large ground lease
- Multi-discipline assets
- 20 tenants
- 15 -year term
- Low amortisation for first 5 years
- 80% LTV at sub bps margin
A Family Office client was purchasing the leasehold of a shopping centre in London, in close proximity of both Underground and Overground stations. The retail, hotel and car park assets made up a commercial portfolio valued at £25m.
100% of the units were let to strong national retailers and the long WAULT to break meant a 10-15 year term could be considered. They were seeking maximum LTV that could be achieved at “senior” finance pricing with low initial amortisation.
We successfully leveraged the leasehold at 70% LTV at sub 250 bps. The15 year facility compared favourably to the client's existing offer of a highly amortising, 5-year term loan at just 55% LTV.
"We saw renewed lender appetite with this transaction, not only securing a high LTV and long term, but low pricing too. The prominent location meant high footfall and fully tenanted units, providing a strong case to negotiate and meet every requirement our client had."